Bank reconciliation and entries The following information was available to reconcile Nelson Company's book cash balance with its bank statement as of September 30, 2021: The September 30 cash balance according to the accounting records was $21,870. Oustanding checks from August's bank reconciliation: Check # 356 $1,240 Check # 357 775 Check # 359 3,280 Check # 360 924 Below is a record of the cash receipts and cash payments for September: Cash Deposits Cash Payments Date Amount Check# Amount Sep 2 $8,359 361 $3,268 Sep 4 11,250 362 7,140 Sep 6 4,371 363 4,257 Sep 12 5,260 364 3,525 Sep 15 12,118 365 4,160 Sep 18 7,493 366 1,789 Sep 22 5,395 367 6,285 Sep 27 21,478 368 3,365 Sep 30 12,884 369 12,225 370 10,894 371 6,357 372 1,410 373 2,538 374 11,886 375 7,482 376 9,352 Continued … Part 4 continued On October 3, Nelson received the following bank statement for September 30: Second Bank Bank Statement for September 30, 2021 Beginning Balance, September 1, 2021 $33,399 Deposits and other credits: Sep 3 8,359 Sep 5 11,250 Sep 5 Note 5,000 Sep 7 4,371 Sep 13 5,260 Sep 16 12,118 Sep 19 7,493 Sep 23 5,395 Sep 28 21,478 Sep 29 ACH 6,350 Sep 30 ACH 3,250 90,324 Checks and other debits: Check# Sep 1 356 1,240 Sep 1 357 775 Sep 2 359 3,280 Sep 4 361 3,268 Sep 4 362 7,410 Sep 6 363 4,257 Sep 8 364 3,525 Sep 9 365 4,160 Sep 14 366 1,789 Sep 15 367 6,285 Sep 15 369 12,225 Sep 18 370 10,894 Sep 21 371 6,357 Sep 22 NSF 1,100 Sep 23 373 2,538 Sep 28 376 9,352 Sep 29 ACH 350 Sep 30 SC 240 77,030 Ending Balance, September 30, 2021 46,693 Additional information: a. The Bank Collection on September 5 was for a Note Receivable. b. The ACH received on Septmber 29 was from a customer on account. c. The ACH received on September 30 was for rental income. d. The NSF check related to a customer deposit on September 19. e. Check number 362 was incorrectly entered on the books by the accounts payable clerk. f. The ACH payment on September 29 was for the telephone bill. Required 1. Prepare a bank reconciliation for September 30, 2021 on the following page. 2. Journalize the necessary entries in the attached general journal.

Bank reconciliation and entries The following information was available to reconcile Nelson Company's book cash balance with its bank statement as of September 30, 2021: The September 30 cash balance according to the accounting records was $21,870. Oustanding checks from August's bank reconciliation: Check # 356 $1,240 Check # 357 775 Check # 359 3,280 Check # 360 924 Below is a record of the cash receipts and cash payments for September: Cash Deposits Cash Payments Date Amount Check# Amount Sep 2 $8,359 361 $3,268 Sep 4 11,250 362 7,140 Sep 6 4,371 363 4,257 Sep 12 5,260 364 3,525 Sep 15 12,118 365 4,160 Sep 18 7,493 366 1,789 Sep 22 5,395 367 6,285 Sep 27 21,478 368 3,365 Sep 30 12,884 369 12,225 370 10,894 371 6,357 372 1,410 373 2,538 374 11,886 375 7,482 376 9,352 Continued … Part 4 continued On October 3, Nelson received the following bank statement for September 30: Second Bank Bank Statement for September 30, 2021 Beginning Balance, September 1, 2021 $33,399 Deposits and other credits: Sep 3 8,359 Sep 5 11,250 Sep 5 Note 5,000 Sep 7 4,371 Sep 13 5,260 Sep 16 12,118 Sep 19 7,493 Sep 23 5,395 Sep 28 21,478 Sep 29 ACH 6,350 Sep 30 ACH 3,250 90,324 Checks and other debits: Check# Sep 1 356 1,240 Sep 1 357 775 Sep 2 359 3,280 Sep 4 361 3,268 Sep 4 362 7,410 Sep 6 363 4,257 Sep 8 364 3,525 Sep 9 365 4,160 Sep 14 366 1,789 Sep 15 367 6,285 Sep 15 369 12,225 Sep 18 370 10,894 Sep 21 371 6,357 Sep 22 NSF 1,100 Sep 23 373 2,538 Sep 28 376 9,352 Sep 29 ACH 350 Sep 30 SC 240 77,030 Ending Balance, September 30, 2021 46,693 Additional information: a. The Bank Collection on September 5 was for a Note Receivable. b. The ACH received on Septmber 29 was from a customer on account. c. The ACH received on September 30 was for rental income. d. The NSF check related to a customer deposit on September 19. e. Check number 362 was incorrectly entered on the books by the accounts payable clerk. f. The ACH payment on September 29 was for the telephone bill. Required 1. Prepare a bank reconciliation for September 30, 2021 on the following page. 2. Journalize the necessary entries in the attached general journal.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Bank reconciliation and entries

The following information was available to reconcile Nelson Company's book cash
balance with its bank statement as of September 30, 2021:

The September 30 cash balance according to the accounting records was $21,870.

Oustanding checks from August's bank reconciliation:
Check # 356		$1,240
Check # 357		775
Check # 359		3,280
Check # 360		924

Below is a record of the cash receipts and cash payments for September:

Cash Deposits		Cash Payments
Date	Amount		Check#	Amount
Sep 2	$8,359		361	$3,268
Sep 4	11,250		362	7,140
Sep 6	4,371		363	4,257
Sep 12	5,260		364	3,525
Sep 15	12,118		365	4,160
Sep 18	7,493		366	1,789
Sep 22	5,395		367	6,285
Sep 27	21,478		368	3,365
Sep 30	12,884		369	12,225
			370	10,894
			371	6,357
			372	1,410
			373	2,538
			374	11,886
			375	7,482
			376	9,352


*Continued …*

*Part 4 continued*
On October 3, Nelson received the following bank statement for September 30:

Second Bank
Bank Statement for September 30, 2021

Beginning Balance, September 1, 2021				$33,399

Deposits and other credits:
Sep 3			8,359
Sep 5			11,250
Sep 5		Note	5,000
Sep 7			4,371
Sep 13			5,260
Sep 16			12,118
Sep 19			7,493
Sep 23			5,395
Sep 28			21,478
Sep 29		ACH	6,350
Sep 30		ACH	3,250	90,324

Checks and other debits:
	Check#
Sep 1	356		1,240
Sep 1	357		775
Sep 2	359		3,280
Sep 4	361		3,268
Sep 4	362		7,410
Sep 6	363		4,257
Sep 8	364		3,525
Sep 9	365		4,160
Sep 14	366		1,789
Sep 15	367		6,285
Sep 15	369		12,225
Sep 18	370		10,894
Sep 21	371		6,357
Sep 22		NSF	1,100
Sep 23	373		2,538
Sep 28	376		9,352
Sep 29		ACH	350
Sep 30		SC	240	77,030

Ending Balance, September 30, 2021				46,693

Additional information:
a. The Bank Collection on September 5 was for a Note Receivable.
b. The ACH received on Septmber 29 was from a customer on account.
c. The ACH received on September 30 was for rental income.
d. The NSF check related to a customer deposit on September 19.
e. Check number 362 was incorrectly entered on the books by the
accounts payable clerk.
f. The ACH payment on September 29 was for the telephone bill.

Required

1. Prepare a bank reconciliation for September 30, 2021 on the following page.
2. Journalize the necessary entries in the attached general journal.

Expert Solution

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.